Special decision taken on 20% stake of state-owned banks

President Ranil Wickremesinghe says the government has decided to allot 20% of shareholding in state-owned banks to the depositors and staff of those banks.

The decision was taken in with the intention of meeting the recapitalization requirement borne out due to the increase in interest rates, rising NPLs, loan settlement issues faced by businesses due to the economic crisis and liquidity issues faced by the state banks.

“It is proposed to allow 20 percent of shareholding of the Bank of Ceylon and People’s Bank by their depositors and staff.”

President Wickremesinghe noted that the government’s ability to provide additional capital at this stage to the state banks is very limited given the lack of fiscal space.